taking a home equity loan, look over these guidelines.
Make your mortgage payments a priority. It's your home that's
on the line.
Don't go with a high loan-to-value product. Lenders who let
you borrow more than your house is worth may not be doing you
If you like plastic too much, forgo using a credit card to access
a line of credit and get checks instead. Paper is a little harder
to let go of.
4. Don't tempt yourself by carrying your home equity credit
card or checks with you all the time.
Keep some equity freed up for emergencies.
Maintain good credit. Banks monitor your payment habits and
if they see a change for the worse, they could reduce or freeze
Read the fine print in your loan agreement.
Want a home equity loan? Get
quotes in your area.
8. If a lender is unfamiliar to you, check with government agencies
to see if there have been any complaints.
Before you do anything, ask yourself whether you can afford
more debt and, if so, how much.
10. If you're out of a job, you could soon be out of a house
too if you can't make the loan payments. Investigate other resources
-- disability, unemployment, savings, borrowing against a 401(k),
stocks, insurance policy or retirement plan -- before you decide
to take that risk.
11. If you are going to use the money to make a large purchase,
make sure it's something that's going to outlast the life of
the loan. Don't put your house on the line for a vacation or
12. Don't use home equity loans for day-to-day expenses. Those
should be paid entirely out of your current income.